Building Permit Budget $ On The Rise

The Elicker Administration expects a $1.3 million bump in building permit revenue next fiscal year, as city inspectors take on complex — and costly — new buildings like the in-the-works 10-story bioscience tower at 101 College St.

City Building Official Jim Turcio offered that update during the latest Board of Alders Finance Committee meeting.

The meeting was held in the Hillhouse High School auditorium on Sherman Parkway this past Thursday evening. It marked the final public hearing and set of departmental workshops in the committee’s months-long review of Mayor Justin Elicker’s proposed $633 million general fund budget for Fiscal Year 2022 – 23 (FY23). If approved by the full Board of Alders, that budget would go into effect on July 1.

While most budget workshops before the Finance Committee have focused on various city department’s expenses, committee alders spent as much time Thursday night asking Turcio about how much money the Building Department expects to bring in next fiscal year as about how much it plans to spend.

According to the mayor’s proposed budget, the Building Department projects notching $15 million in building permit revenue (listed in the budget as ​“building inspections”) next fiscal year. That’s $1.3 million than the $13.7 million budgeted for building permit revenue this fiscal year.

“How confident are you in that” $15 million building permit revenue number? Finance Committee Chair and Westville Alder Adam Marchand asked. And is that due primarily to ​“new construction” or to ​“closing out current projects” that have come in at higher values than expected.

“It’s new construction,” Turcio replied.

Take 101 College St., for example. That’s where Winstanley Enterprises is currently building a 10-story, 525,000 square-foot, $100 million bioscience lab and office tower atop the former Rt. 34 Connector downtown.

Turcio said that each lab floor should cost around $10 — $20 million to construct. ​“And you’ve got 10 floors of that,” he said.

What does that translate to for city building permit and inspection revenue? ​“You’re looking at $3 to $7 million range just for building out that building,” he said.

Turcio added that construction costs are still way up from pre-pandemic levels. While they went up around 60 or 70 percent at the height of Covid-19, he said, those costs — for everything from building supplies to salaries for construction work — are still roughly 40 percent higher than they were in 2019.

Are those cost increased reflected in building permits? Marchand asked.

“You better believe it,” Turcio replied.

So, Marchad said, the increased building permit revenue is thanks to ​“more buildings, more expensive buildings, more complicated buildings?”

“Yes,” Turcio said.

City financial reports, meanwhile, show just how much building permit revenue has flowed into city coffers during the city’s ongoing, years-long building boom.

According to the latest monthly financial report from February, the city expects to bring in $14 million in building permit revenue this year, which is $300,000 above the $13.7 million projected in the budget. Last fiscal year, FY21, the city earned $22.5 million in building permit revenue, well above the $19.45 million projected in that year’s budget. And the year before that, FY20, the city earned $15.6 million in building permit revenue, which was below the $17.9 million projected in that year’s budget.

3 Job Positions Scrapped, 3 Added

Turcio also told the committee alders on Thursday night that his department’s proposed FY23 budget eliminate three positions and create three new positions — all with the goal of filling several persistent vacancies.

The three positions slated to be eliminated are assistant building plumbing inspector, assistant plumbing inspector, and assistant building inspector. All three are currently vacant, and each has a salary of $63,213.

The three positions slated to be created are plumbing and mechanical plans examiner, electrical plans examiner, and zoning officer. Each has a proposed salary of $78,213.

“In the last two years, we’ve advertised for plumbing inspectors and assistant building inspectors,” Turcio said. And the city has received ​“zero applicants” for those positions. ​“We don’t pay enough.”

By adding these three new positions, with more responsibilities and higher pay, he’s hoping to attract qualified candidates interested in working for New Haven city government. He said that comparable positions in Hartford and Bridgeport pay $10,000 more than what New Haven had been offering. The city just couldn’t compete, and couldn’t attract applicants.

Would the new zoning officer position focus on reviewing plans to make sure they’re compliant with the city’s zoning code before a building is constructed? Prospect Hill/Newhallville Alder Steve Winter asked. Or will that position instead focus on making sure that building is compliant with the zoning code after it’s been constructed?

“We need help on both ends,” Turcio replied. ​“We’re leaning towards both ways.” 

“I think that would be beneficial,” said Winter. Since ​“occasionally there are bottlenecks on both ends.”

Turcio returned to the complexity of new lab buildings going up in his justification for why the city needs new ​“plans” examiner positions, and not just inspectors.

“These buildings are getting more and more complicated. Right now, there’s only four or five of us in the office that can do high rises,” he said, such as Kline Tower and 101 College St. ​“Only a few people are qualified to do those [inspections] right now.”

And with more high rises potentially coming soon, the building department needs qualified examiners and inspectors on staff.